As India celebrates the 10th anniversary of the Pradhan Mantri MUDRA Yojana (PMMY), Prime Minister Narendra Modi extended his heartfelt congratulations to the beneficiaries of the scheme, highlighting its transformative impact on millions of lives across the country. In a series of post on X, the Prime Minister expressed his pride in the success of MUDRA, which has played a pivotal role in empowering marginalized communities, fostering entrepreneurship, and driving inclusive economic growth in India.
“Today, as we mark #10YearsOfMUDRA, I would like to congratulate all those whose lives have been transformed thanks to this scheme. Over this decade, MUDRA Yojana has turned several dreams into reality, empowering people who were previously overlooked with the financial support to shine. It illustrates that for the people of India, nothing is impossible!” said Prime Minister Modi.
The PM also emphasized the scheme’s focus on social inclusion, noting that nearly half of MUDRA beneficiaries come from the SC, ST, and OBC communities, while more than 70% of the beneficiaries are women. “Every Mudra loan carries with it dignity, self-respect, and opportunity. In addition to financial inclusion, this scheme has also ensured social inclusion and economic freedom,” he added.
Since its launch on April 8, 2015, the Pradhan Mantri MUDRA Yojana has sanctioned over 52 crore loans, totaling ₹32.61 lakh crore. The average loan size has grown significantly, from ₹38,000 in FY16 to ₹1.02 lakh in FY25, reflecting the increasing demand for higher-value loans among small enterprises.
The scheme has played a key role in the rise of credit flow to Micro, Small, and Medium Enterprises (MSMEs). According to a report by the State Bank of India, MSME lending surged from ₹8.51 lakh crore in FY14 to ₹27.25 lakh crore in FY24, with projections indicating it will exceed ₹30 lakh crore in FY25. The share of MSME credit in total bank credit has increased from 15.8% in FY14 to nearly 20% in FY24, underscoring the growing importance of MSMEs in India’s economy.
Women have been significant beneficiaries of the MUDRA scheme, with women accounting for 68% of the total recipients. The average loan for women has risen at a compound annual growth rate (CAGR) of 13%, reaching ₹62,679 between FY16 and FY25. Women-led MSMEs, particularly in states with higher proportions of loans to women, have seen notable increases in employment generation, according to government data.
MUDRA has also made substantial strides in ensuring expanded access to formal finance for traditionally underserved groups. Fifty percent of MUDRA accounts are held by entrepreneurs from SC, ST, and OBC communities, while 11% of accounts are held by members of minority communities.
Loan disbursals under MUDRA have seen a remarkable shift toward larger loans. Loans in the Kishor category (₹50,000 to ₹5 lakh) grew from just 5.9% of total disbursals in FY16 to 44.7% in FY25. Additionally, loans in the Tarun category (₹5 lakh to ₹10 lakh) and the newly introduced Tarun Plus category (₹10 lakh to ₹20 lakh) have also witnessed increased demand.
Tamil Nadu leads in total disbursals, with ₹3.23 lakh crore, followed closely by Uttar Pradesh (₹3.14 lakh crore) and Karnataka (₹3.02 lakh crore). Other states, including West Bengal and Bihar, have also seen substantial contributions. Among Union Territories, Jammu and Kashmir has recorded ₹45,815.92 crore across over 21 lakh loan accounts.
MUDRA caters to micro enterprises engaged in a variety of sectors, including manufacturing, trading, processing, and services. These small businesses—often sole proprietorships or own-account enterprises—employ nearly 10 crore people, making them the second-largest source of employment in India after agriculture.
The scheme has garnered global recognition for its contribution to expanding financial access and promoting entrepreneurship. The International Monetary Fund (IMF) has praised MUDRA for supporting self-employment and the formalization of the economy. The IMF’s 2024 report reaffirms the significant role of schemes like PMMY in fostering the growth of women-led businesses and enhancing financial inclusion.
The MUDRA Yojana is implemented through a network of lending institutions, including Scheduled Commercial Banks, Regional Rural Banks, Non-Banking Financial Companies (NBFCs), and Microfinance Institutions. These institutions offer collateral-free loans of up to ₹20 lakh under the scheme, which operates under the Micro Units Development and Refinance Agency (MUDRA).